Dodom. NMB Bank Plc yesterday offered its mortgage products to players in the real estate sector in a bid to play an increasingly important role in helping Tanzania reduce the decent housing deficit, currently estimated at 200,000 units a year.
The lender, which has granted a total of 33.64 billion shillings in mortgages over the past seven years, said here yesterday that it was ready to support the government’s efforts to achieve home ownership ambitions Tanzanians.
“NMB has a special program to support housing improvement through affordable and fast home loans,” the bank’s personal banking manager, Ms. Aikansia Muro, told attendees of a workshop on housing improvement. that he [NMB] organized for actors in the construction value chain.
Ms Muro said mortgages given by NMB Bank range between 10 and 700 million shillings.
A mortgage market update report that was released last week by the Bank of Tanzania (BoT) and the Tanzania Mortgage Refinance Company Limited shows that NMB Bank held the fourth spot in a market where 33 lenders had – until to March 31, 2022 – extended a combined Sh503. 0.74 billion mortgage loans over the past seven years.
According to Ms. Muro, NMB Bank offered its customers four options to finance their housing needs.
These include loans for the purchase of a home; building mortgage; a loan to complete the construction of a house and use a house as collateral to obtain a loan.
In recent years, interest rates on mortgages have also fallen to between 14 and 16% from 17%.
“The bank has also lowered the salary threshold for eligible borrowers to 300,000 shillings from 700,000 shillings,” Ms Muro said.
At the event, the Chief Government Assessor, Mrs. Evelyne Mugasha, said that by organizing the housing day and workshop, the NMB had shown its commitment to support the government’s efforts to improve the supply of decent housing, saying available studies show the country had an annual deficit. of 200,000 units.
NMB Central Zone Director Nsolo Mlozi said they have engaged housing stakeholders to share notes on the best ways to address sector challenges, including the issue of affordable mortgages.